Going bankrupt: could this be a viable option for debt management?

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Going bankrupt: could this be a viable option for debt management?

22nd Sep 2010

With the national debt standing at £22,000 per capita for every man, woman and child – it could be said that many people have their fair share of a financial burden. There are a number of ways to manage this worry also (i.e. debt management) – even though some of these financial agreements may not remove your debt completely.

As extreme an option as it sounds, you always opt for bankruptcy. To achieve, this you need to file what is known as a Bankruptcy Petition with your local court, if it provides this service. Most of the forms can be filled online so the process can begin.

At this stage of course, all of this is voluntary. A Judge will be likely to determine whether or not this is a recommended move for you to make based on your own individual circumstances, and if they proceed to accept your request, an Order will be made. This involves a more in-depth look at your finances, spanning everything that you might have done during your financial past.

Sometimes, you might not have a choice in the matter if one of your creditors tries to proceed in making you bankrupt. They can do this for filing for your bankruptcy in Court if you have outstanding debts which you have not arranged to pay the lender in question. There have also been circumstances where a number of lenders have brought a case together of a borrower’s lack of payment in many different areas to make their case stronger.

Before the processes of making you bankrupt get into motion, you will have the chance to either pay off the debt in full or to make an arrangement with the lender in question on what would be a viable way for you to make repayments that is ideal for both parties. However, any agreements that you do make have to be kept, such as an IVA which, if unsuccessful, could result in your bankruptcy.

If you are contending with the prospect of a bankruptcy, it can be a difficult area for you to get your head around, and there can be a lot of different ideas that you have to contend with. There are areas of advice that you can seek in order to ensure that you remain safe even if you lose your home. For example, there are some rules in the laws that surround bankruptcy that the new owner of your property must wait up to 12 months for you to proceed and find a new property for your family – obviously to prevent people ending up without a home to go to.

The future for you from a credit perspective is also likely to change. You will have your bank accounts closed and the options which you have when you want to re-open an account are likely to be very limited. Your bills might also be changed in order to ensure that you are not given any credit in your situation.


Posted in Debt management

 
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